Morgan Stanley predicts that the value of the investment assets of Japan’s super-rich is expected to grow by more than 30% by 2030, as Japanese households increase their cash market investments. This will bring the total investments of ultra-high-net-worth individuals and the upper affluent to ¥906 trillion, or about $5.8 trillion, by 2030, surpassing the current level of ¥690 trillion.
Meanwhile, U.S. financial firms are bullish on the Japanese market, which is expected to have a potential of $38 billion. Japanese banks and securities firms, which see wealth management as key to growth, expect interest in Japanese assets to rekindle as the stock market recovers and negative interest rate policies end.
On the other hand, Bain Capital announced further investments in the Japanese real estate market and plans to expand its team to optimize project management. The firm has built a diversified real estate portfolio in Japan covering commercial, residential and special purpose properties.
The firm also plans to continue to explore additional investment areas including hotels, data centers and residential, which it believes will demonstrate growth potential as Japan’s economy continues to recover and demographics change.
To capitalize on these investment opportunities and succeed in the Japanese market, here are some strategies and recommendations:
Portfolios should be diversified to include commercial, residential, special purpose properties and emerging sectors such as hotels and data centers. At the same time, provide tailor-made wealth management and investment advisory services to ultra-high-net-worth individuals and the affluent to meet the demand for personalized services. In addition, we focus on long-term economic and social trends, such as Japan’s economic recovery and demographic changes, to ensure that our investment strategies areadapted to the changes.
By implementing these strategies, we can better capitalize on the potential of the Japanese market and gain an edge over the competition.
